The new centre marks a pivotal moment in Tesla’s global strategy, especially amid a challenging period for the company as it seeks to recover from a 13 percent sales slump earlier this year. Market experts suggest the move aims to strengthen Tesla’s foothold ahead of an anticipated visit by a former US president, offering a boost through renewed diplomatic and economic ties.
Ambitious EV targets underpin this launch: Saudi Arabia’s Vision 2030 initiative mandates that 30 percent of Riyadh’s vehicle fleet be electric by 2030. The state-backed Electric Vehicle Infrastructure Company plans to deploy approximately 5,000 public charging stations by 2030—a 50‑fold increase over current numbers.
Local demand for EVs is still modest. About 2,000 EVs were sold in the Kingdom last year, compared to 261 charging stations in the UAE despite its much smaller size. Extreme desert heat—soaring above 50°C during peak summer—adds pressure on battery efficiency, and long stretches of undeveloped highway infrastructure hinder widespread adoption.
Nevertheless, Tesla appears undaunted. Online ordering, pop-up stores in Jeddah and Dammam, and continuing roll‑out of its Supercharger network reflect a commitment to establishing deep roots in the region. The Supercharger network, active since April, currently serves major urban centres with rapid‑charge capability of up to 275 km in 15 minutes.
Tesla’s arrival comes at a moment when global rivals are also reinforcing their positions. China’s BYD entered the Riyadh market in May 2024, and Lucid Motors, majority‑owned by the Kingdom’s sovereign fund, is building a manufacturing plant in Jeddah. Analysts point out that while many of BYD’s sales in Saudi are hybrids rather than full EVs, the market’s momentum is gaining, albeit gradually.
Public reception to Tesla’s launch has been positive. A diverse crowd of car enthusiasts, content creators and youth gathered at the Riyadh centre, drawn by the brand’s innovation appeal. “It’s a beautiful step we’ve been waiting for—Tesla opening here is big news,” said local businessman Bader Khalid. A teenage visitor echoed the sentiment, calling Elon Musk a “visionary” whose ambitions may not all make sense now, but “in the future, it’ll all come together”.
Relations between Musk and Saudi’s leadership have strengthened since 2018, when a failed proposal to take Tesla private strained ties with the Public Investment Fund. The opening of this centre appears to reflect a thaw, as Musk re‑engages with Gulf investors.
Operational challenges persist. Heat‑induced battery degradation remains a concern, as does the current scarcity of charging stations—none exist on the 900 km Riyadh‑Mecca route. Tesla will need to work closely with local authorities to address these limitations to ensure the EV transition is sustainable and convenient.
For Tesla, this launch offers strategic value—not only in market expansion, but in demonstrating resilience and adaptability. Through aligned infrastructure investment and sustained engagement, the company could help catalyse Saudi Arabia’s shift from oil dependency to a low‑carbon mobility future.
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Saudi Arabia